California Energy Commission Should Not Increase Price of LED Bulbs, NEMA Says

January 26, 2016 - 4:57 PM EST

California Energy Commission Should Not Increase Price of LED Bulbs, NEMA Says

Proposed amendments to appliance efficiency regulations relating to general service LED lamps would increase costs while reducing energy efficiency

ARLINGTON, Va., Jan. 26, 2016 /PRNewswire-USNewswire/ -- The National Electrical Manufacturers Association (NEMA) called on the California Energy Commission (CEC) again today to ensure that California consumers have access to the most efficient, cost-effective, and preferred LED bulbs currently on the market. A proposal under consideration at the CEC that could be voted on as early as January 27, 2016, if approved, will be the first instance in which the CEC pursues regulatory action that will reduce potential energy savings, increase the cost of energy-saving products for California consumers, and make it less likely that California consumers will want to buy these products.

"We have again asked commissioners to halt the adoption of 15-day language currently scheduled for the CEC's January 27, 2016, business meeting," said NEMA President and CEO Kevin J. Cosgriff. "This proposal is counter to the CEC's mission and based on poorly analyzed data of the emerging LED lamp market."

Numerous studies affirm that the largest impediment to adoption of LEDs has been price. In written letters to commissioners, NEMA notes that LED prices have dropped substantially since this rulemaking began, while consumer LED adoption rates have been increasing.

"Today's market price of general service LED lamps is nearing parity with the product they are primarily intended to offset, the halogen incandescent lamp. And their price is continuing to fall," said Cosgriff. "By contrast, CEC staff analysis acknowledges the proposal will increase the price of LED lamps and that the proposed designs are less energy-efficient than today's more popular LED options."

Cosgriff also reminded commissioners that 2015 LED sales grew an estimated 237 percent over 2014 sales, which would represent approximately 188 million bulbs sold. "The adoption of LED bulbs by consumers is rapidly accelerating," he said. "The 15-day language will negatively affect this growth, the efficiency gains that accompany them, and the prices citizens of California have to bear."

Click here to read NEMA Comments on Proposed Amendments to Appliance Efficiency Regulations.

The National Electrical Manufacturers Association (NEMA) represents nearly 400 electrical, medical imaging, and radiation therapy manufacturers on the forefront of electrical safety, reliability, resilience, efficiency, and energy security. Our combined industries account for more than 400,000 American jobs and more than 7,000 facilities across the U.S. Domestic production exceeds $117 billion per year.